Investment Opportunities with the EB-5 Visa

EB-5 Program pic
EB-5 Program
Image: uscis.gov

The chief executive officer of Global Capital Advisors in San Francisco, Kevin Fitzgerald spent nearly 10 years with U.S. Advisor (d/b/a U.S. Advisors). During his time with the company, Kevin Fitzgerald served as an EB-5 Visa Regional Center Sponsor.

Established by Congress in 1990 as a way to encourage foreign investment in the U.S. economy, the EB-5 program requires investors to invest in new commercial enterprises via regional centers. Investors must invest at least $1 million into a U.S. commercial enterprise, using cash, capital equipment, secured indebtedness, inventory, or tangible property. If the investor wishes to invest in a targeted employment area, which encompasses rural areas and areas with high unemployment, the minimum investment amount may be lowered to $500,000.

In addition to meeting the minimum investment amount, investors must create at least 10 full-time jobs for U.S. workers within a two-year period. Investors can also meet this requirement by creating indirect jobs, which occur as a result of capital invested in EB-5 regional centers.

Advertisements

San Francisco’s Olympic Club Foundation Supports Young Athletes

 

San Francisco’s Olympic Club Foundation pic
San Francisco’s Olympic Club Foundation
Image: olympicclubfoundation.org

Having previously served as an executive for 15 years at U.S. Advisors, LLC, in San Francisco, Kevin Fitzgerald is now the CEO of Global Capital Advisors, LLC. Also a philanthropist, Kevin Fitzgerald supports the city’s Olympic Club Foundation.

The Olympic Club’s humanitarianism goes back to the 1860s. Its informal efforts to improve the lives of others by athletic competition led to the establishment of the foundation in 1992. The group now has youth sports programs in the nine counties surrounding San Francisco.

Its Athletes Fund provides financial support for girls and boys who can possibly excel at the international or national levels of their sport. Grants are available for 50% reimbursement of expenses, up to $5,000. Funded activities include training, coaching, and competitions. The grants cover athletes participating in sports ranging from swimming and cycling to handball and triathlon.

The age parameters are 10 to 18, although exceptions may be made for Olympic athletes. Recipients must be involved as amateurs and be nationally or sectionally ranked in their age group.

What is IRS Section 1031?

IRS pic
IRS
Image: irs.gov/

Residing in San Francisco, California, Kevin Fitzgerald has managed over $2.5 billion in real estate investment properties. Acting as CEO for several real estate investment firms including Global Capital Advisors and U.S. Advisors in Napa, California, Kevin Fitzgerald has been successful at acquiring and reselling hundreds of single-family homes.

U.S. Advisors dealt mainly in real estate holdings in conjunction with Section 1031 contracts. Established by the IRS, Section 1031 allows real estate investors to sell their property and buy another one while putting off their taxes. Simply, if a property sells and the money is put towards purchasing another one, the capital gains taxes on the original property are deferred until it is sold with no reinvestment.

The reasoning behind the IRS creating Section 1031 is that when a person sells a property and then immediately buys another, it just appears to be a transfer of real estate to another with the same amount of value being held.

Qualified Investment Opportunities for EB-5 Candidates

Global Capital Advisors pic
Global Capital Advisors
Image: http://www.global.us

A veteran of the financial industry, Kevin Fitzgerald served as chief executive officer of U.S. Advisors. Developing his skills in property investment while at U.S. Advisors, Kevin Fitzgerald now leverages his expertise to guide clients in the EB-5 immigrant visa process as CEO of Global Capital Advisors.

Managed by the United States Customs and Immigration Services (USCIS), a division of the Department of Homeland Security, EB-5 immigrant visas are distributed to 10,000 qualified individuals annually. Of the quantity, 30 percent are reserved for foreign investors who allocate funds in a Targeted Employment Area (TEA). Regions with unemployment rates of 150 percent of the nation’s average or are considered rural fall within the category of TEA.

In an effort to boost the American economy, eligible candidates must invest in a new business enterprise. Forming a new company or purchasing an existing one that has undergone restructuring or reorganization meets the requirement. In addition, expansion of a new business and pooling are acceptable. The former requires an investor to grow employment by 40 percent. At minimum, the standard is 10 jobs.

Pooling allows multiple EB-5 visa holders to invest in the same enterprise. The minimum number of jobs created remains at 10 for each investor; however, the aggregate is divided evenly among the number of investors.

Report Explores Urbanization Trends in Commercial Real Estate

With experience in commercial real estate and investment management, Kevin Fitzgerald led U.S. Advisor, LLC (dba US Advisors, LLC), and Overseas Investor Services, LLC, before assuming responsibilities as the CEO of Global Capital Advisors, LLC, located in San Francisco. Kevin Fitzgerald stays current on topics with the real estate investment industry by monitoring reports and updates in his field.

According to a recent report from CBRE Global Investors, macro trends support the continued growth of urbanization and a sustained demand for properties located in urban areas. The report states that investors have become increasingly confident in urban investment due to lower vacancies and strong rent growth in recent years. However, the CBRE Global Investors report states that urban investing can be challenging and that it is extremely important to select the right site for investment or development. The reports explains that preferred locations offer positive projections for strong demand, rent growth, occupancy, liquidity, and marketability.

When looking to invest in an urban property, the report recommends that investors focus on attractive-looking properties with “old bones,” as such buildings draw in potential residents of various ages. The report also notes that an ideal property sits on a well-traveled street and provides access to public transportation and other amenities.

Things to Consider before Purchasing Foreclosed Properties

Currently the chief executive officer of Global Capital Advisors LLC, in San Francisco, Kevin Fitzgerald previously held executive positions with U.S. Select Holdings, LLC, and U.S. Advisor, LLC (dba U.S. Advisors, LLC). While at U.S. Advisors, Kevin Fitzgerald gained extensive experience with Section 1031 exchanges and helped the firm acquire $2.4 billion in real estate, including foreclosed properties.

Also known as a real estate owned (REO) property, a foreclosed home is one that has been repossessed by the lender after the borrower/owner defaults on mortgage payments. Although the process for buying an REO home is similar to any other real estate transaction, there are some things you should consider before purchasing this type of property.

First off, unless you are a real estate expert, it is a good idea to find an agent in your area with experience in buying and selling foreclosed homes. He or she can help you find what you are looking for in your market and will provide invaluable assistance during the often complex transactions that come with foreclosure purchases.

Also, while you may be able to get a discount on a foreclosed home, keep in mind that these properties are typically sold as is and sometimes require substantial repairs. For this reason, it is important to assess expected repair costs and figure them into your negotiating price. However, be sure that your offer is still competitive, since a bank is not likely to accept anything less than what it considers a good price.

Tips on Buying a Foreclosed Home

As newly appointed CEO of Global Capital Advisors, Kevin Fitzgerald draws on extensive real estate experience garnered in his previous role with U.S. Advisor, LLC (DBA U.S. Advisors, LLC). In addition to acquiring of $2.4 billion in properties, including foreclosure properties, while at U.S. Advisors.

When you buy a foreclosed real estate owned (REO) home, you deal directly with the bank that financed a defunct loan. This most likely enables you to get a good value on the property, though it may require you to navigate legal and logistical processes yourself. You may need to do your own research to determine the home’s market value and thus what a competitive offer would be. This frequently requires you to determine how fast the home is likely to sell, which helps you to decide whether to make a low or a high offer. If the home is projected to sell quickly, then it will be necessary to make a high offer.